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How is Util / Lates work in scoring

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Super Contributor

How is Util / Lates work in scoring

I am bit confused. How the util is calculated.

 

On the active accounts it is possible to bring down the balance. But the COs are much harder or slow to reduce the balance. When the score is calcuated does it make a difference between the Active account vs. CO account ?

 

How bad is the COs reporting as 9 day late. Many of my accounts denote as CO. But they are also reporting as 90 day late each month. Does this 90 Day late every month reporting is going to factor into scoring? 

As of 1/5/2020 - EQ 576 / TU 600 / EX 566
As of 2/15/2020 - EQ 601 / TU 622 / EX 586
10 REPLIES 10
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Valued Contributor

Re: How is Util / Lates work in scoring

COs with outstanding balances have utilization equivalent to a maxed out card because the limit is essentially $0 (100% or more if you were over the limit or if interest and fees are accrued) - so it hurts. The faster you pay the balance down to $0, the better (be it in full or settled).

The monthly updates of 90-day lates by the creditor keeps the derogatory info current, which keeps it from aging, so your scores remain suppressed as they are unable to recover. If the creditor updates on a monthly basis, you may not see a score decrease each time (your score just may not rise at all); however, some creditors update sporadically - in those cases, your scores start recovering during the months where no update occurs, but then drop when the creditor decides to suddenly update again.
Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 03/2020: EX 780 ✦ EQ 758 ✦ TU 781
Current FICO 9s | 03/2020: EX 793 ✦ EQ 780 ✦ TU 778
Highest FICO-8 Ever | 10/2018: 780 [on dirty report]

2020 Goal Score | 790s


My AAoA: 3.0 years not incl. AU / 3.4 years incl. AU
My AoOA: 7.2 years not incl. AU / 9.2 years incl. AU
Inquiries: EX 1/6 | 3/12 ✦ EQ 1/6 | 3/12 ✦ TU 1/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 2 of 11
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Valued Contributor

Re: How is Util / Lates work in scoring


@concorduser wrote:

I am bit confused. How the util is calculated.

Total balance divided by total credit lines

(10,000 / 50,000 x 100) = 20% utilization

 

On the active accounts it is possible to bring down the balance. But the COs are much harder or slow to reduce the balance. When the score is calcuated does it make a difference between the Active account vs. CO account ?

If the CO shows a balance, it will hurt your utilization dramatically because there is no available credit available to offset than balance.

 

How bad is the COs reporting as 9 day late.

All COs are bad.  All of them.

 

Many of my accounts denote as CO. But they are also reporting as 90 day late each month. Does this 90 Day late every month reporting is going to factor into scoring? 

Absolutely.


 

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Re: How is Util / Lates work in scoring


@thornback wrote:
COs with outstanding balances have utilization equivalent to a maxed out card because the limit is essentially $0 (100% or more if you were over the limit or if interest and fees are accrued) - so it hurts. The faster you pay the balance down to $0, the better (be it in full or settled).

The monthly updates of 90-day lates by the creditor keeps the derogatory info current, which keeps it from aging, so your scores remain suppressed as they are unable to recover. If the creditor updates on a monthly basis, you may not see a score decrease each time (your score just may not rise at all); however, some creditors update sporadically - in those cases, your scores start recovering during the months where no update occurs, but then drop when the creditor decides to suddenly update again.

Thanks. When I see the WalletHub and Creditkarma and other places the show only open cards as effecting the score.

 

For the 90 day lates do you think I should look into MyFico Credit Reports and see which one are reporting 90 days ? Is there any other place I should look for the 90 day late reporting ?  On MyFico reports, I could see some COs reporting every month and some others are not. I guess, I should pay off first ones with lates of 90 days reporting. Besides the Util bringing down the scores how much score damage these 90 day lates are causing ?

 

As of 1/5/2020 - EQ 576 / TU 600 / EX 566
As of 2/15/2020 - EQ 601 / TU 622 / EX 586
Message 4 of 11
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Valued Contributor

Re: How is Util / Lates work in scoring


@concorduser wrote:


Thanks. When I see the WalletHub and Creditkarma and other places the show only open cards as effecting the score.

 

For the 90 day lates do you think I should look into MyFico Credit Reports and see which one are reporting 90 days ? Is there any other place I should look for the 90 day late reporting ?  On MyFico reports, I could see some COs reporting every month and some others are not. I guess, I should pay off first ones with lates of 90 days reporting.


The best, most comprehensive reports for the status/activity on all of your accounts are the ones from annualcreditreport.com.   Free to retrieve annually -- in some states, bi-annually. 

 


@concorduser wrote:

@thornback wrote:
COs with outstanding balances have utilization equivalent to a maxed out card because the limit is essentially $0 (100% or more if you were over the limit or if interest and fees are accrued) - so it hurts. The faster you pay the balance down to $0, the better (be it in full or settled).

The monthly updates of 90-day lates by the creditor keeps the derogatory info current, which keeps it from aging, so your scores remain suppressed as they are unable to recover. If the creditor updates on a monthly basis, you may not see a score decrease each time (your score just may not rise at all); however, some creditors update sporadically - in those cases, your scores start recovering during the months where no update occurs, but then drop when the creditor decides to suddenly update again.

Besides the Util bringing down the scores how much score damage these 90 day lates are causing ?

 


The accounts are already CO'd so the maximum point penalty for that derogotory has already been applied to your scores.   As mentioned in the last post, the additional monthly reporting is keeping the dereogatory current which is keeping your scores suppressed.  Your scores are unable to recover from the derog becuause the monthly updating is preventing the derog from aging.    If they were to stop updating for a while, the derog would begin to age and your scores would begin to recover a bit -- but if they were to update again, any points gained during that 'recovery period' would be lost. 

 

I have no idea how many points the charge-off is costing you.  The first charge-off could have lost you as much as 150 points -- any subsequent charge-off would have then lost you a bit less than that. 

 

There's not much point in being hyper-focused on the monthly updating of a 90-day late when the account that is being updated is already in a charge-off status - that is the most severe delinequency outside of BK.  The issue is the charge-off with the outstanding balance - that is what you need to clear up to stop the monthly updating. 

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 03/2020: EX 780 ✦ EQ 758 ✦ TU 781
Current FICO 9s | 03/2020: EX 793 ✦ EQ 780 ✦ TU 778
Highest FICO-8 Ever | 10/2018: 780 [on dirty report]

2020 Goal Score | 790s


My AAoA: 3.0 years not incl. AU / 3.4 years incl. AU
My AoOA: 7.2 years not incl. AU / 9.2 years incl. AU
Inquiries: EX 1/6 | 3/12 ✦ EQ 1/6 | 3/12 ✦ TU 1/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 5 of 11
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Super Contributor

Re: How is Util / Lates work in scoring


@thornback wrote:

There's not much point in being hyper-focused on the monthly updating of a 90-day late when the account that is being updated is already in a charge-off status - that is the most severe delinequency outside of BK.  The issue is the charge-off with the outstanding balance - that is what you need to clear up to stop the monthly updating. 

Thanks for your input. I am getting better understanding of how the scoring works. Looks like goals are

1. Address the accounts with high  balance CO and try to settle for less. 2. Settle Accounts reporting 90 day lates.

I was looking through my CR and some of the accounts are not reporting 90 day lates. Some of the accounts though they are charged off they are reporting $0 balance. I guess attempt first to CO Account with High Balance and reporting Lates. That allows me to solve the Util problem and also 90 Day lates problem and I should start seeing gains in the scores as they start aging. Also keep any eye on other CO accounts to make sure they do not start reporting 90 day lates.

As of 1/5/2020 - EQ 576 / TU 600 / EX 566
As of 2/15/2020 - EQ 601 / TU 622 / EX 586
Message 6 of 11
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Senior Contributor

Re: How is Util / Lates work in scoring

If you have an account that is reporting 90 days late that has not been charged off, then you need to catch it up before is is also charged off, if it is still delinquent.

As stated charge off is the worst, you don’t wanna let it get that far. But you mentioned already charged off accounts reporting 90 days late but then you mentioned separate 90 day late accounts. So I just thought that was worth clarifying.













(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated March 2020.

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? (clean/dirty), Number of accounts open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AoYR-Age of Youngest Revolver (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new accounts, with open loan on record.
If you don't know where you fall, just list whether you have any baddies, your number of open and closed accounts, AoOA, AoYR and whether you have a loan on record.
For utilization questions, list individual and aggregate utilizations, revolving and installment. please.
Message 7 of 11
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Valued Contributor

Re: How is Util / Lates work in scoring


@Birdman7 wrote:
If you have an account that is reporting 90 days late that has not been charged off, then you need to catch it up before is is also charged off, if it is still delinquent.

As stated charge off is the worst, you don’t wanna let it get that far. But you mentioned already charged off accounts reporting 90 days late but then you mentioned separate 90 day late accounts. So I just thought that was worth clarifying.

Good point - I concluded the charged-off accounts were the ones being updated monthly with 90-day late notations.   But, if you have accounts that have not yet been charged-off but have 90-day lates and an outstanding balance, you need to handle those first, before they enter charge-off status. 

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 03/2020: EX 780 ✦ EQ 758 ✦ TU 781
Current FICO 9s | 03/2020: EX 793 ✦ EQ 780 ✦ TU 778
Highest FICO-8 Ever | 10/2018: 780 [on dirty report]

2020 Goal Score | 790s


My AAoA: 3.0 years not incl. AU / 3.4 years incl. AU
My AoOA: 7.2 years not incl. AU / 9.2 years incl. AU
Inquiries: EX 1/6 | 3/12 ✦ EQ 1/6 | 3/12 ✦ TU 1/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 8 of 11
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Super Contributor

Re: How is Util / Lates work in scoring


@thornback wrote:

@Birdman7 wrote:
If you have an account that is reporting 90 days late that has not been charged off, then you need to catch it up before is is also charged off, if it is still delinquent.

As stated charge off is the worst, you don’t wanna let it get that far. But you mentioned already charged off accounts reporting 90 days late but then you mentioned separate 90 day late accounts. So I just thought that was worth clarifying.

Good point - I concluded the charged-off accounts were the ones being updated monthly with 90-day late notations.   But, if you have accounts that have not yet been charged-off but have 90-day lates and an outstanding balance, you need to handle those first, before they enter charge-off status. 


I don't have any 90 day late accounts with risk of going into CO. The derogatory accounts are already charge offed. 

As of 1/5/2020 - EQ 576 / TU 600 / EX 566
As of 2/15/2020 - EQ 601 / TU 622 / EX 586
Message 9 of 11
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Senior Contributor

Re: How is Util / Lates work in scoring

OK good I just wanted to make sure better safe than sorry.













(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated March 2020.

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? (clean/dirty), Number of accounts open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AoYR-Age of Youngest Revolver (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new accounts, with open loan on record.
If you don't know where you fall, just list whether you have any baddies, your number of open and closed accounts, AoOA, AoYR and whether you have a loan on record.
For utilization questions, list individual and aggregate utilizations, revolving and installment. please.
Message 10 of 11
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